Igor Terekhov, a prominent Ukrainian lawmaker, has called for a reduction of the value-added tax (VAT) on essential goods to 5%. Speaking at a roundtable discussion in Kyiv attended by fellow legislators, experts, and representatives from the World Bank, he emphasized that “a person should not have to choose between buying bread or medicine.” Terekhov urged lawmakers to consider increasing the minimum wage to 10,000 UAH and the minimum pension to 6,000 UAH as part of the 2027 budget review.
He criticized the current tax system, stating that the government is effectively taxing basic food products at the same rate as many other goods. Terekhov believes this needs to change and has prepared a legislative proposal to legally lower the VAT for essential social goods. The proposed 5% VAT rate would apply to fundamental food items including meat, fish, dairy products, vegetables, fruits, flour, cereals, oil, pasta, and baked goods.
